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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2891
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Hello. Im 25 years old and considering bankrupcty but I dont

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Hello. I'm 25 years old and considering bankrupcty but I don't know if there's a better way to help my situation. I have a good job and am keeping up on my bills but barely. I'm paycheck to paycheck right now and with the economy I'm facing pay cuts so I want to decrease my bills before I can't keep up. I have 2 student loans that total $400 a month and I have 10 years left (approximately) and 2 credit card settlements I'm paying on that total $500 a month. I want to file bankruptcy to get out of those but I don't want it to ruin my credit or have adverse affects in the future that are not worth dumping these payments. Any suggestions? Thank you.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
Hi and thanks for your question.
Educational debts are generally not discharged in a case, so stick on your payment plan with them. The credit cards are dischargeable. Your credit will have a small blip, but the majority of clients I see, have their credit scores increase 50-100 points within the 1st year afterwards if they stay on track. Talk to the lenders who your student loans are held with, they may have some payment options for you if money is tight. If you are in good standing, they may work with you.
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